A company estimates that the total amount of uncollectible accounts based upon e
ID: 2373080 • Letter: A
Question
A company estimates that the total amount of uncollectible accounts based upon existing accounts receivable should be $2,300. Assuming the company had an existing debit balance of $400 in its allowance for uncollectible accounts, bad debts expense would be recorded with a:
A. Credit to allowance for uncollectible accounts$400
B. Debit to bad debts expense $2,700
C. Debit to allowance for uncollectible accounts $2,700
D. Credit to allowance for uncollectible accounts 1,900
E. Debit to bad debts expense $2,300
Explanation / Answer
A. Credit to allowance for uncollectible accounts$400